More than 1,000 nurseries and childminders have gone out of business in the last two years as the country’s childcare crisis deepens, it was revealed yesterday.
Ofsted figures show there has been a net loss of 1,146 nurseries and childminders from the Early Years Register since 2015.
This is the year the Conservative government was elected with a promise of 30 hours free childcare for working parents – a flagship scheme it has been accused of underfunding.
In total, 15,288 childcare providers have left the register since 2015, while only 14,142 have joined, according to the data obtained by Tracy Brabin, the shadow minister for early years.
Ofsted figures show there has been a net loss of 1,146 nurseries and childminders from the UK Early Years Register since 2015. File image used
The data, published in The Observer, shows that four-fifths (81 per cent) of those who left the register had been rated either good or outstanding by Ofsted.
The new figures come as it was recently revealed that more than a third of nurseries fear going bust because of the Tory’s new ‘free’ childcare scheme.
Since this September, most children aged three and four have been entitled to 30 hours a week of free childcare.
To qualify, parents must earn a minimum of the equivalent of 16 hours per week at the national living or minimum wage and less than £100,000 a year.
But nurseries point out that Government funding does not cover the cost of providing the places.
Rising financial pressures including higher business rates and the impact of the national living wage is forcing nurseries to close.
Other childcare providers are restricting when they offer the free hours and charging parents for hours needed outside of these times.
Some are also raising their hourly rate for younger children and introducing fees for services that were previously free such as meals, milk and nappies.
2015 wass the year the Conservative government was elected with a promise of 30 hours free childcare for working parents – a flagship scheme it has been accused of underfunding. File image used
The sector has written an open letter to Chancellor Philip Hammond ahead of the Budget on Wednesday, pleading for the government to increase childcare funding and warning of a crisis.
The Pre-School Learning Alliance and the Professional Association for Childcare and Early Years say local authorities typically pay nurseries and childminders just £4.27 an hour to provide the ‘free’ hours to parents.
This leaves nurseries facing an average 18 per cent annual shortfall in funds, and the average childminder out of pocket by more than £410 per child per year.
As a result, a study published in September found that 38 per cent of nurseries expect to be driven out of business within a year under the strain of the new childcare initiative.
The survey of 1,400 nurseries, preschools and childminders carried out by the Pre-School Learning Alliance also found that half expected to raise their fees and charges.
Research published in Nursery World also shows that some nurseries have come up with ‘unethical’ ways to pass the cost of providing the scheme back on to parents.
Sanjay Morzaria, who runs Little Darling Childcare in Harrow, said he faces a £14.60 daily shortfall in funding from his local authority for each 30-hour place he provide.
Under the rules of the scheme, he is not allowed to openly charge families a top-up fee to make up the difference.
The sector has written an open letter to Chancellor Philip Hammond (pictured) ahead of the Budget on Wednesday, pleading for the government to increase childcare funding and warning of a crisis
Instead, he is charging parents of children eligible for 30 hours government-funded childcare £15 a day for lunch.
Those families taking their youngsters home for lunch pay a £7.50 penalty for every five minutes they are early or late returning.
Mr Morzaria said: ‘It’s unethical and totally unfair but I don’t have a choice.’
Parents whose children are eligible for the 30-hour scheme also pay a new charge of £40 a day to cover the cost of lunch and extracurricular activities at the Abacus Ark chain of nurseries in London.
Owner Anthony Ioannou said: ‘We have to do what we’re doing because we’d shut down otherwise.’
Ms Brabin yesterday accused the Government of failing working families.
She told The Observer: ‘Ministers ask early-years providers to do more and more but refuse to give them the necessary funding.’
Children and families minister Robert Goodwill said: ‘We are determined to support as many families as possible with access to high-quality, affordable childcare, and earlier this year we fulfilled our promise to double the free childcare available to working parents to 30 hours a week, saving them up to £5,000 a year per child.’